CRM 2: What you need to know now and into 2016

CRM 2: What you need to know now and into 2016

Financial decisionsAt Doxim, we’re continuing to keep a close watch on the roll-out of The Client Relationship Model – Phase II. Firms are preparing for changes that come into effect both this year as well as in 2016. In this article, we highlight the key changes, as well as explore some of the wider issues surrounding the roll-out.

  • December 31, 2015: Your quarterly account statements will need to include additional information. This information includes the market value and cost of securities your clients are buying, as well as any mutual funds they are purchasing that are subject to a Deferred Sales Charge.
  • July 15, 2016: Your organization will be required to provide annual client reports which include investment performance information, a list of deposits and withdrawals related to clients’ accounts, as well as a summary of all fees, charges, and commissions that your client has paid.

Want more information? Here are a few pertinent resources and articles regarding CRM2:

The folks over at the Raymond James Advisor Choice Blog wrote a great piece called “CRM 2: Turn a Challenge into Opportunity,” in which they argue that the increasingly complex statements give advisors a great chance to touch base with their clients, and offer to walk them through the additional data and what it means to them. Of course, this office visit also lets the advisor build rapport with the client and remind them of their value in advance of the summary of fees, charges, and commissions.

Meeting the Challenge of CRM 2,” an older article from, has a useful list of things your firm needs to be doing to handle the increased reporting requirements of CRM 2. You might want to review this list to ensure you have everything in place to meet the 2015 and 2016 requirements.

While most advisors and firms are handling the increased transparency that comes with CRM 2’s implementation ethically, Dan Hallet argues in his article “Some advisers behaving badly with CRM2 on the horizon” that a small percentage of advisors are trying to game the CRM timeline in a couple of disturbing ways.

Finally, here’s a great series of excerpts from a Morningstar Executive Forum on CRM 2. Below is one fantastic perspective on CRM 2, from this article:

As far as engaging clients and building a relationship, I think, it’s a huge opportunity. Sure, a lot of the spending is to get over the hump and make sure that the regulators don’t chew our heads off, but it’s also going to leave us with better firms, better relationships with our clients and clients that fit better with our models.

Tom Bradley, President, Steadyhand Investment Management Ltd.

Want some help getting your reports CRM 2 compliant? Give us a call and we can guide you in the right direction.

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